A Study On Optimizing Capital Structure In Dunhuang Seed

As a concentrated manifestation of the rights and obligations for those who benefit from the enterprise, the capital structure is the core problem in corporate financing decision-making, determining the impact of corporate governance structure, thereby affecting the value of enterprises, especially in listed companies, playing an important role in improving the value of enterprises and the corporate governance. However, the current research into capital structure of listed companies still being at the initial stage, intends to the extremes that the capital structure and corporate value is positively correlated, or that there is no correlation between capital structure and corporate value. There is no specific theoretical system on how to optimize capital structure. Functioning as equity and debt financing, originated from state-owned enterprises many listed companies are mainly in state-owned shares, thus the balance is low, and ownership structure is not quite reasonable. Therefore, research into optimizing the capital structure of listed companies has practical significance.In this paper, based on the theory of capital structure, adopting the method of combining the theory with practice, analyzing the present situation of capital structure in Dunhuang Seed, the present research points out the problems existing in the capital structure of the problem, finds out the solutions to optimizing the capital structure, and evaluate the effect of this optimizing.The author suggests that there may exist different optimal capital structure in different companies and different industries under different conditions. Its standard for measuring is the minimum cost of capital and the maximum value of the enterprise.